Re:Why Wal-Mart Will Never Pay Like Costco
by tanzam75 on Thursday August 29, 2013 @01:38AM
(#6294435)
The opposite model as Xbox and Playstation.
The console is the up-front purchase, which equates to Costco's membership fee. But Xbox and Playstation lose money up-front.
Instead, Costco operates on the Wii or the iPhone model, where you take most of your profit up-front and then operate the rest at a much smaller profit. (Though still positive.)
The console is the up-front purchase, which equates to Costco's membership fee. But Xbox and Playstation lose money up-front.
Instead, Costco operates on the Wii or the iPhone model, where you take most of your profit up-front and then operate the rest at a much smaller profit. (Though still positive.)